Stock markets surge in early trade on hopes of potential de-escalation in West Asia war

New Delhi: Equity benchmark indices Sensex and Nifty surged in early trade on Wednesday, tracking a sharp rally in global markets on hopes of a potential de-escalation in the ongoing West Asia conflict.

The 30-share BSE Sensex jumped 1,899.53 points to 73,847.08 in early trade. The 50-share NSE Nifty surged 572.55 points to 22,903.95.

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All the 30-Sensex firms were trading higher, with Trent, Bharat Electronics, Adani Ports, Bajaj Finance, InterGlobe Aviation and Larsen & Toubro emerging as the major gainers.

In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were quoting sharply higher. Kospi jumped nearly 7 percent, while Nikkei 225 index climbed over 4 percent.

"There are indications of de-escalation of the war from the statements issued by the Iranian authorities. Iranian president's 'openness to ending the war' and confirmation from the Iranian foreign minister that 'messages were exchanged with the US' indicate that the war might end soon. This view is getting reflected in declines in crude prices and US bond yields," V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

The US market ended significantly higher on Tuesday. The Nasdaq Composite index surged 3.83 percent, S&P 500 jumped 2.91 percent and Dow Jones Industrial Average climbed 2.49 percent.

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"The momentum is largely being driven by a decisive improvement in global risk sentiment, following encouraging signals around potential de-escalation in the ongoing West Asia conflict," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

Brent crude, the global oil benchmark, traded 1.29 percent higher at USD 105.3 per barrel.

Stock markets were closed on Tuesday for Shri Mahavir Jayanti.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 11,163.06 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 14,894.72 crore.

On Monday, the Sensex tumbled 1,635.67 points or 2.22 percent to settle at 71,947.55. The Nifty slumped 488.20 points or 2.14 percent to end at 22,331.40.

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